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EDISTO ANNOUNCES STATUS OF RESTRUCTURING EFFORT

 EDISTO ANNOUNCES STATUS OF RESTRUCTURING EFFORT
 DALLAS, July 8 /PRNewswire/ -- Edisto Resources Corporation


(AMEX: EDS) announced that it is filing today with the Securities and Exchange Commission an amendment to Edisto's registration statement relating to its previously announced proposed comprehensive financial restructuring. The amendment updates certain information in the registration statement and increases to 350 the number of shares of Edisto common stock to be offered for each $1,000 principal amount of the 13-7/8 percent senior notes due 1999 of Edisto's subsidiary NRM Energy Company. The increase is intended to offset the dilutive effect on the offer of the previously announced partial redemption of Edisto's outstanding preferred stock for shares of common stock on July 22, 1992.
 Edisto also announced that it has entered into an agreement with one of its bank lenders amending the $10 million credit agreement of Edisto, the parent corporation. The amended agreement requires Edisto to make principal payments of $525,000 on July 31, 1992 and $1 million per month thereafter, and is due in full on Dec. 31, 1992. Prior to the amendment, the credit agreement required a $725,000 principal payment on June 30, 1992, which Edisto would have been unable to make. Edisto made a principal payment of $200,000 on June 30, 1992, in connection with the execution of the amendment. Edisto does not anticipate being able to make any of the principal payments due under the credit agreement, as amended, unless one of its subsidiaries is sold, and has therefore requested that such principal payments be deferred monthly until the proposed restructuring is completed. The bank has agreed to review this request on a monthly basis.
 Edisto requires prompt relief from its liquidity problems. In the absence of the sale of a significant asset, which Edisto does not currently expect, such relief can only be obtained through a restructuring such as the one Edisto is pursuing. If Edisto is unable to effectuate an acceptable restructuring on a timely basis, it will likely seek to effectuate such a restructuring through a bankruptcy filing. Edisto may also seek to implement the restructuring through a bankruptcy filing if its bank lender does not agree to further defer the principal payments due under the $10 million credit agreement. Any such bankruptcy filing would include Edisto's oil and gas exploration and production subsidiaries (other than its international subsidiary), but would not include Edisto's gas transmission and marketing subsidiaries, including ESCO Energy, Inc., Omega Pipeline Company and Vesta Energy Company.
 Edisto's registration statement relating to the restructuring has not yet been declared effective by the Securities and Exchange Commission. Edisto has initiated and is pursuing discussions with certain large noteholders and the bank lender to Edisto and its subsidiary Edisto Exploration & Production Company regarding the restructuring. None of such parties has indicated whether it will agree to the proposed restructuring.
 Edisto Resources Corporation's consolidated activities include the production of oil and gas, the exploration and development of oil and gas reserves and natural gas marketing and transportation.
 -0- 7/8/92
 /CONTACT: Gary L. Pittman of Edisto Resources, 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU: RCN


LR -- NY066 -- 7575 07/08/92 16:39 EDT
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Publication:PR Newswire
Date:Jul 8, 1992
Words:535
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